What is the difference between arguments and parameters of a function?

Function parameters are variables declared in the function definition that serve to receive input data.

Arguments are specific values or expressions passed to the function when it is called.

Example in JavaScript:

function greet(name) { // name is a parameter
  console.log('Hello, ' + name + '!');
}

greet('Alexey'); // 'Alexey' is an argument

Thus, parameters are "places" for data inside the function, and arguments are the actual data passed to it.